Bill Text: NY S05148 | 2015-2016 | General Assembly | Amended

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Bill Title: Relates to loan products that may be offered by banks; authorizes a bank or trust company, with the approval of the superintendent, to offer a loan product that encourages personal savings by requiring a borrower to place a portion of the loan into an interest-bearing savings account.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-06-10 - SUBSTITUTED BY A6105A [S05148 Detail]

Download: New_York-2015-S05148-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5148--A
           Cal. No. 670
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                      May 5, 2015
                                      ___________
       Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
         printed to be committed to the Committee on Banks -- reported  favora-
         bly  from  said committee, ordered to first and second report, ordered
         to a third reading, amended and ordered reprinted, retaining its place
         in the order of third reading
       AN ACT to amend the banking law, in relation to loan products  that  may
         be offered by banks
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (c) of subdivision 4 of section 108 of the  bank-
    2  ing law, as amended by chapter 19 of the laws of 1991, subparagraph (iv)
    3  as  amended by chapter 119 of the laws of 1992 and as further amended by
    4  section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
    5  read as follows:
    6    (c)  The  rate  of  interest  authorized  by this subdivision shall be
    7  inclusive of all charges incident to investigating and making any  loan.
    8  No  fee,  commission,  expense,  or  other charge whatsoever in addition
    9  thereto shall be taken, received, reserved, or  contracted  for,  except
   10  (i)  the  fees  payable to the appropriate public officer to perfect any
   11  lien or other security interest taken to secure the loan or the premium,
   12  not in excess of such filing fee, payable for any insurance in  lieu  of
   13  such  filing;  (ii)  in  case  of  default,  and  in accordance with the
   14  provisions of the instrument evidencing the obligation, either a fine in
   15  an amount not to exceed five cents per dollar on any  installment  which
   16  has  become  due and remained unpaid for a period in excess of ten days,
   17  but no such fine shall exceed five dollars and only one  fine  shall  be
   18  collected  on any such installment regardless of the period during which
   19  it remains in default, and provided further that should the aggregate of
   20  such fines collected in connection with any loan exceed two  per  centum
   21  of  such  loan,  or  in any event twenty-five dollars, the bank or trust
   22  company shall refund such excess to the borrower within sixty days after
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09865-02-5
       S. 5148--A                          2
    1  the loan is paid in full, or, subject to an allowance of unearned inter-
    2  est attributable to the amount in default, interest on each amount  past
    3  due  at  a rate not in excess of the rate provided for in the instrument
    4  evidencing  the  obligation;  (iii)  the  actual expenditures, including
    5  reasonable attorney's fees for necessary court process; and (iv) in case
    6  the bank or trust company insures a borrower under a credit unemployment
    7  insurance policy, group life insurance policy,  group  health  insurance
    8  policy,  group  accident  insurance policy, or group health and accident
    9  insurance policy, or requires insurance on  personal  property  securing
   10  any  such  loan,  an  amount not in excess of the premiums chargeable in
   11  accordance with rate schedules then in  effect  and  on  file  with  the
   12  superintendent  of financial services for such insurance by the insurer.
   13  No bank or trust company shall require a borrower to place  any  sum  on
   14  deposit,  or  to  make  deposits in lieu of regular periodic installment
   15  payments, or to do or refrain from  doing  any  other  act  which  would
   16  entail  additional  expense  or  sacrifice,  as a condition precedent to
   17  granting a loan under  the  authority  of  this  subdivision  except  as
   18  provided  in  subdivision  five-b  of  this section. NOTWITHSTANDING THE
   19  FOREGOING, A BANK OR TRUST COMPANY MAY, WITH THE PRIOR APPROVAL  OF  THE
   20  SUPERINTENDENT, OFFER A LOAN PRODUCT THAT ENCOURAGES PERSONAL SAVINGS BY
   21  REQUIRING  A  BORROWER  TO  PLACE A PORTION OF THE PRINCIPAL OF THE LOAN
   22  INTO AN INTEREST-BEARING SAVINGS ACCOUNT AS  A  CONDITION  PRECEDENT  TO
   23  GRANTING  A  LOAN  UNDER  THE AUTHORITY OF THIS SUBDIVISION. IN DECIDING
   24  WHETHER TO APPROVE A LOAN PRODUCT PURSUANT TO  THE  PRECEDING  SENTENCE,
   25  THE  SUPERINTENDENT  MAY  CONSIDER THE RECENT RESULTS OF EXAMINATIONS OF
   26  THE BANK OR TRUST COMPANY, THE TERMS AND STRUCTURE OF,  AND  THE  UNDER-
   27  WRITING CRITERIA AND MARKETING PLAN FOR THE PROPOSED LOAN PRODUCT, OTHER
   28  LOANS  OFFERED  BY THE BANK OR TRUST COMPANY, AND SUCH OTHER FACTORS THE
   29  SUPERINTENDENT DEEMS TO BE RELEVANT. Notwithstanding the  provisions  of
   30  this paragraph no refund of excess fines shall be required if it amounts
   31  to less than one dollar.
   32    S 2. This act shall take effect immediately.